Proposal for a Directive of the European Parliament and of the Council on financial collateral arrangements .

the Settlement Finality Directive 8 and the Collateral Directive 9 .

Proposal for a directive of the European Parliament and of the Council on financial collateral arrangements ( COM ( 2001 ) 168 ) , pdf 128 kB , en

The present Directive should not provide for a scrutiny of the contents of financial information to be disclosed , but at least a minimum guarantee for the timely availability of such information .

The Legal Affairs Committee accepted the formulation set out by the European Commission in Article 2 and, whatever the constitutional niceties of the argument, it is obviously essential that, by whatever mechanism, criminal sanctions are adopted in each Member State.

Reserves an amount set aside out of distributable profits , which is not intended to meet any specific liability , contingency or expected diminution in value of assets known to exist at the balance sheet date .

Sometimes a repo transaction is agreed via a third party ( triparty repo ) . Reverse transaction an operation whereby the central bank buys ( reverse repo ) or sells ( repo ) assets under a repurchase agreement or conducts credit operations against collateral .

The current Directive continues to build on this approach with regard to annual and interim financial reporting .

A reverse sale and repurchase agreement ( reverse repo ) is a contract under which a holder of cash agrees to the purchase of an asset and , simultaneously , agrees to re sell the asset for an agreed price on demand , or after a stated time , or in the event of a particular contingency .

ECB Opinion on amendments to the legislation on financial collateral arrangements as regards credit claims in Luxembourg

Duplication of disclosure requirements in Article 10 of the Directive

Finally , Article 5 of the proposed Directive deals with enforcement by sale or by close out netting .

Excluding detailed information on the financial situation of the guarantor in case of government guarantee schemes will save another Euros 812 000 .

Eligibility of debt instruments issued by the European Financial Stability Facility ( EFSF ) for use as collateral in Eurosystem credit operations

Real estate collateral

It also asked for consistent solutions between requirements related to annual financial reporting and the registration document under the forthcoming Prospectus Directive .

europa . eu ) .

52 See footnote 50 in this chapter .

Assurance level

Assuring Quality

The 1991 Directive followed closely the recommendations of the Financial Action Task Force on Money Laundering ( FATF ) , the world standard in this area .

Financial stability and European financial integration

The credit quality of the eligible assets is constantly monitored to check that it is equivalent to at least the minimum level of financial soundness specified by the Eurosystem .

As well as introducing new types of settlement, the Commission's proposal also extends the list of types of asset that can be used as financial collateral credit claims accepted for the collateralisation of central bank credit operations ( bank loans or credit claims ).

Unknown directive

Article 6 Admission of subordinated assets with adequate guarantees as eligible collateral 1 .

These are interlinked, and stakeholders include central banks, FSAs, national treasuries, and deposit guarantee funds.

Eligible collateral

Loans on a trust basis .

Liabilities on a trust basis .

Liabilities on a trust basis

EN Underlying assets

Here is our guarantee.

Specifically , the creation and enforcement of a pledge or repo under the insert reference to the relevant arrangement with the CB will be valid and enforceable under the laws of jurisdiction .

Specifically , the creation and enforcement of a pledge or repo under the insert reference to the relevant arrangement with the CB will be valid and enforceable under the laws of jurisdiction .'

Finally , in view of the high importance of further enhancing the efficient and safe use , both at a domestic and cross border level , of financial collateral arrangements , both for the EU financial markets in general and the conduct of Eurosystem collateralised operations in

Article 6 Admission of subordinated assets with adequate guarantees as eligible collateral 1 .

ECB Opinion on amendments to Community legislation on settlement finality in payment and securities settlement systems and on financial collateral arrangements

Amended proposal for a European Parliament and Council Directive on investor compensation schemes ( COM ( 94 ) 585 ) , pdf 563 kB , en

Proposed instruments Directive .

of the Directive .

of the Directive ..

The 1991 Directive took particular account of the Forty Recommendations of the Financial Action Task Force on Money Laundering ( FATF ) , the international body leading the global effort in this field .

A directive amending the current Directive is the most appropriate instrument .

Collateral if applicable